After the IMF has affirmed that the United Kingdom will grow more than previously announced for the next year, the pound has managed to pare early losses versus the euro and the dollar.

International Monetary Fund report

Yesterday and today the pound has found support on International Monetary Fund report having a renewed forecast for 2010 GDP growth in the U.K., which was in the past at almost zero and now it is expected to be around 1 percent, as there has been a slight improvement in the real estate market and also there has been a growth in the retail prices.

Decreased attractiveness for the national currency

The U.K. was not only considered to be one of the most affected countries by the global slump last year, but it was also one those countries that has proved itself less efficient to recover from the negative scenario.

This is the fact which decreased attractiveness for the national currency and so the the pound has been set to the weakest levels in more than a decade versus its main rivals.

IMF forecast

In such situation the IMF forecast is definitely a breather for the pound and it is now to be presumed to be a light in the end of the tunnel for the faltering U.K.’s economy.

After fluctuations from yesterday GBP/USD remained rather neutral at 1.5974 as of 11:20 GMT. EUR/GBP traded at 0.9103 that has dropped from 0.9177 hours earlier.

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